WB report: Within the 5 year expiration Armenia could seek for the category of an average income country

ArmInfo. According to  World Bank (WB)  experts implemented studies, Armenia could seek for the category of average income country. This is stated in the World bank Report entitled as Concept of Armenia Country Systemic  Diagnostics (SCD)  Report, developed within the purpose of discovering the main challenges in respect to Armenia, country's abilities in the aspect of sustainable development, as well as the progress improvement and poverty reduction.

According to the source, from 2008 by now various circumstances were fixed and recorded raising obstacles to the poverty decrease, investments and economic development growth, particularly mentioning the geographic location of Armenia without the exit to sea, being surrounded with bellicose  neighbors, blocked borders with Turkey and Azerbaijan, probability of natural disasters. At the same time, demographic risks are clearly visible, particularly in respect to population reduction. Due to the expert evaluation, in total until 2009 the arrangements in respect to poverty reduction were suspended and the  poor groups of Armenian population  reduced the consumption for 40%, within the reduction of cash flows in the country.  

At the same time, the report states the obstacles related to the entrance of new companies to Armenia market, which is described by the experts with the powerful business groups affect on the current business policies. According to WB, the absence of free entrance to the market for the sectors providing the main components of the production (utilities, internet communication) also raises obstacles - especially in respect to the private enterprises export promotion.  Particularly, in GDP share the export of goods and services forms only 30%, while in neighbor Georgia this indicator forms 45 %, and in the countries of Europe and Central Asia  - about 43%. At that, due to logistics efficiency index, among 156 countries Armenia occupies the 141st position, which is pretty low.

Patrticularly, the indications of Armenia due to the Global Competitiveness Index  (GSI)  in 2016 formed 4,1 %, while Georgia had a higher one  - 4,8%. The GSI Indicator was set due to the evaluation of general criterias, comprising  institutions quality  (4%), infrastructure (3,9%), macroeconomic  sustainability (4,2%), health and elementary education (5,5%), higher education and professional training (4,5%), market efficiency  (4,8%), labor market efficiency (4,3%) financial market development  (3,8%) technological development (4%), internal market capability (2,8%), companies competitiveness (3,9%) and  innovations resources (3,3%).